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E-Malt.com Newsletter 41b
October 09 - October 12, 2014
Quote of the Week
"Don't watch the clock; do what it does. Keep going."
Sam Levenson
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Currency Rates
Base Currency: US Dollar
on October 10, 2014 |
Base Currency: Canadian Dollar
on October 10, 2014 |
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1 USD = 0.7856 EUR
1 USD = 0.6186 GBP
1 USD = 1.1118 CAD
1 USD = 1.1315 AUD
1 USD = 107.9230 JPY
1 USD = 2.3854 BRL
1 USD = 40.0307 RUB
1 USD = 6.1313 CNY
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1 CAD = 0.8996 USD
1 CAD = 0.5565 GBP
1 CAD = 0.7067 EUR
1 CAD = 1.0179 AUD
1 CAD = 97.0883 JPY
1 CAD = 2.1459 BRL
1 CAD = 36.0118 RUB
1 CAD = 5.5158 CNY
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Currency Rates Chart
Equities of the Largest Breweries
USA: Legalization of medical marijuana helps beer sales - analyst
...Click here
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USA, CA & VA: Stone Brewing Co. to build new brewery in Richmond, Virginia
...Click here
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USA, Al: Back Forty Brewing officially launches in Alabama
...Click here
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USA, MI: New Holland Brewing to open in Grand Rapids
...Click here
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Canada, NB: Moosehead Breweries to lay off 70 workers due to loss of major brewing contract
...Click here
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Canada, ON: Shillow Beer Co. launches with Sass on the Side Brown Ale
...Click here
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USA, AR: Rebel Kettle Brewing Company to open brewery and taproom in Little Rock
...Click here
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World: SABMiller is expected to report improved pre-tax profits next week
...Click here
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EU: Barley harvest finished with quantity estimates ranging from 57.9 to 59.7 mln tonnes
...Click here
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France & China & Saud Arabia: French barley shipments increase in China and drop in Saudi Arabia
...Click here
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UK: Barley and wheat usage for brewing, malting, and distilling increases in the first two months of 2014/15 marketing year
...Click here
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Jamaica: Red Stripe investing US$10 mln to set up cassava supply chain
...Click here
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UK: Dual purpose malting barley varieties offer security in marketing options
...Click here
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The Czech Republic: Equipment producer can’t handle all orders from booming microbrewing sector
...Click here
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Kenya: Keroche Breweries hires new top managers within expansion plan
...Click here
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Graph of the Week
Table of the Week
France Barley Supply and Distribution
Prices Evolution
Barley Prices
Canadian Malting and Feed Barley Prices
US Malting and Feed Barley Prices
French Malting and Feed Barley Prices
Theoretical Malt Prices
Canadian Malt Prices
US Malt Prices
Theoretical EU Malt Prices
Scientific Digest
Why are dry hopped beers more bitter?
ABSTRACT
This is a popular questions, and though it was not really
proven so far, the idea that additional alpha acids and
polyphenols as well as a certain brain illusion is well
accepted. But here are some facts: This US team analysed
dry hopped beers for their content of alpha and beta acids,
humulinones and polyphenols. The correlation testing with
the sensory trials showed that the bitterness contributed by
dry hopping is a combination of polyphenols and
humulinones! Also a strong correlation of aroma intensity
and bitterness intensity was proven. So it is a combination
of actual bitter tasting compounds and a portion of a brain
based illusion - cheers!
Read more
Source: Barth Innovations
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These Days in Business History
October 09
1930 1st synthetic detergent, "Dreft" by Procter & Gamble, goes on sale
1946 1st electric blanket manufactured; sold for $39.50
1979 1st consumer use of home banking by computer (Knoxville Tn)
October 10
1993 Paolo Gucci, entrepreneur/accessories designer, dies at 64
1995 Robert E. Lucas awarded Nobel Prize in economics
2006 Google buys YouTube.com for $1.6 billion
October 11
1617 Franchois Vranck, economist/writer (Deduction), dies at about 62
1844 Henry John Heinz is born. He founded prepared-foods company, 57 varieties
1868 Thomas Edison patents his 1st invention: electric voice machine
1887 A. Miles patents elevator
October 12
1492 Columbus arrives in Bahamas [real Columbus Day]
1918 1st use of iron lung (at Boston's Children Hospital). The iron lung is called a negative pressure ventilator. It enables a person to breathe when normal muscle control has been lost
1935 Luciano Pavarotti, born in Modena, Italy, operatic tenor, Oh Giorgio, 3 Tenors
Agenda
News Articles
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USA: Legalization of medical marijuana helps beer sales - analyst
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The legalization of medical marijuana has helped beer sales, contrary to previous research that pointed to a decline, according to a note from Sanford C. Bernstein analyst Trevor Stirling.
Recreational pot use in the two states where it’s legal has so far not had a “significant impact” on beer, he was quoted as saying by Bloomberg on October 10.
“The average blue-collar Bud drinker is less likely to be smoking pot,” Stirling said. “As far as medical marijuana is concerned, it does not appear to be a big threat to the beer industry.”
The research could relieve one concern for beermakers Anheuser-Busch InBev NV and SABMiller Plc, which have seen U.S. volume decline over the past five years due to high unemployment and a shift to spirits like bourbon and gin. Twenty-three states have allowed medical marijuana and about a dozen, from Florida to Alaska, are considering legalization in some form.
Per-capita beer drinking had a one-time increase of about 0.5 percent in the 10 largest states that have legalized medical marijuana, the Bernstein analyst found. While beer consumption later declined in those states, the rate of decline slowed to become more in line with the national average.
“There may be a ’constrained budget’
...More info on site
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USA, WA: Holy Mountain Brewing opens in Seattle
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It’s been a long time coming, but at last Holy Mountain Brewing finds itself ready to begin distributing beer, seattlepi.com reported on October, 1.
More than four years in the works, the first barrels have been filled at Holy Mountain Brewing Company, located in Seattle’s Interbay neighborhood. Focusing on hop forward, barrel aged, and yeast driven ales and lagers, Holy Mountain will launch its first beers into the Seattle market in early October.
In 2010 head brewer Colin Lenfesty and president Adam Paysse, both award winning homebrewers, rented an industrial space in SODO to expand their brewing efforts and prepare to open a commercial brewery. Lenfesty spent his days brewing professionally, and the two spent nights brewing pilot batches. Holy Mountain was born when the pair met Mike Murphy, whom Lenfesty knew from his day job, where Murphy ran the brewery’s sales operations.
“I was blown away by the passion these guys had for styles that weren’t being offered in Seattle on a regular basis,” said Murphy, most recently head of Sales for Westland Distillery. “From the start, we were all on the same page stylistically and recognized gaps in the local market that we thought should be filled.”
“We saw all these
...More info on site
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USA, CA & VA: Stone Brewing Co. to build new brewery in Richmond, Virginia
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After months of speculation, Stone Brewing Co. has formally announced its intent to build a new brewery in Richmond, Virginia, brewboubd.com reported on October, 9.
Pending local approvals, the country’s tenth largest craft brewer said it will build an east coast brewing facility in Richmond’s Greater Fulton Community.
The San Diego-area brewery has signed a formal letter of intent with the city and plans to invest $74 mln to construct a production brewery, packaging hall, restaurant and retail store.
The search for a location had been ongoing since the company announced its intentions to build a facility, east of the Mississippi River, earlier this year. A number of states throughout the eastern half of the country submitted requests for proposal and subsequently launched campaigns to lure the brewery to town.
“The search for our location east of the Mississippi River was no easy endeavor,” said Stone President and Co-founder Steve Wagner. “We received and reviewed hundreds of proposals, visited more than 40 sites, and received quite a bit of attention from communities and craft beer fans. The three finalist cities each provided diverse offerings, however, we decided to begin next-step negotiations with Richmond because of their ability to meet our extensive site requirements, subject
...More info on site
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USA, Al: Back Forty Brewing officially launches in Alabama
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Back Forty Beer Co., Alabama's largest brewery, had their official launch at the great craft beer joint Craft Brewed, examiner.com reported on October, 8.
The Gadsden, Ala. based brewery was founded in 2009 by Jason Wilson.
Somewhat new to homebrewing, he approached multiple award winning brewer Jamie Ray. He sent him some of his homebrew, which Jamie quickly advised was awful, then said “but I can fix it.”
They immediately began perfecting the recipe for their first beer, Naked Pig Pale Ale. Unfortunately, they didn't have the many hundreds of thousands of dollars to build a brewery, so they reached out to a Kiln, Miss. microbrewery, and asked if they could brew on their system. As Jason tells it, “they left the key under the doormat for us,” and they started brewing on weekends.
Their first beer was released in June, 2009 in north-central Alabama with immediate success. Their second beer, Truck Stop Honey was released in March, 2010. That beer went on to win a silver at the Great American Beer Festival that same year, and the distributor offers came pouring in.
With that success, and with distribution now into all of Alabama, they were able to get the funding for their own
...More info on site
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USA, NY: Ithaca Beer to expand
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If there’s one thing that a city and town can’t have too much off, it’s beer. After a marathon town of Ithaca Planning Board meeting Tuesday, Oct. 7, board members approved preliminary and final site plans for a major expansion to the Ithaca Beer Co., Ithaca.com reported on October, 7.
The proposal involves the construction of a 23,800-square-foot addition on the north side of the existing building to increase production and space. Such an addition would take the company’s building to approximately 40,000-sqaure-foot of their allowed 65,000-square-foot capacity. According to Ithaca Beer founder and owner Dan Mitchell, the expansion would allow the brewery to triple its production from 30,000 barrels of beer per year to nearly 90,000 barrels of beer per year.
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USA, MI: New Holland Brewing to open in Grand Rapids
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New Holland Brewing Co. is coming to Grand Rapids as part of a new Rockford Construction development aimed at revitalizing the city’s West Side, woodtv.com reported on October, 7.
“We’re thrilled to be in Grand Rapids,” New Holland Brewing President and CEO Brett VanderKamp said. “It’s been a long time coming and we really feel welcome here.”
The two-building development will be mixed-use. Half of it will house the new brewery, a distillery tasting room and a restaurant. New Holland Brewing said the brewery will increase its production by between 2,000 and 3,000 barrels each year.
“We’re looking at bringing our single malt whiskey production here, as well as our sour beer production,” VanderKamp said. “We really want to give a focus to sour beer here, offload that from our main manufacturing facility, bring that here and really give this place something special and unique.”
Demolition of the buildings that currently stand on the site of the new brewery is expected to happen in March of next year. The brewery is expected to open in late 2015 or early 2016.
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USA, AL: Fairhope Brewing Co. to expand
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Fairhope Brewing Company, LLC, located in Fairhope, recently announced an expansion to their current brewing facility, gulfcoastnewstoday.com reported on October, 7.
The Fairhope Industrial Development Board approved tax abatements last week for the company to assist in their investments and growth.
The company is looking to add capacity to their current brewing operations. Currently, their local brews are distributed in kegs, but the expansion would open up the doors for the company to begin bottling its beer.
“This expansion will result in a 600 percent increase in our capacity,” explained Jim Foley, managing partner of Fairhope Brewing. “We never thought that we would be expanding so big so soon, but the local support for our business and our product has been so good that we feel now is the time.”
Fairhope Brewing Company is a craft brewery in South Alabama that opened its doors in January of 2013. In its first year of operation, the company sold over 600 barrels of their brew, equating to almost 20,000 gallons.
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Canada, ON: Big Rig Opens new production brewery
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Big Rig Brewery has announced that its new production brewery and taproom in the Ottawa suburb of Kanata, several kilometres west of the original brewpub, is now open, Canadian Beer News reported on October, 7.
The 16,000 square foot facility opened to the public with customers welcomed into a spacious taproom and retail store that also offers a view of the brewhouse where the brewery’s flagship Big Rig Gold is being brewed for expanded LCBO distribution.
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Canada, NB: Moosehead Breweries to lay off 70 workers due to loss of major brewing contract
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Moosehead Breweries will be laying off nearly half of the hourly production staff at its Saint John brewing facility due to the loss of a major brewing contract that represents roughly 40 per cent of the brewery’s output, Canadian Beer News reported on October, 3.
70 workers at the plant received notice that they will be let go when the contract ends at the end of June 2015, unless Moosehead is able to negotiate a similar arrangement with another brewery.
While Moosehead president and CEO Andrew Oland wouldn’t name the company that is cancelling its contract, CBC News has learned that it is Guinness, which currently has Guinness Extra Stout brewed at Moosehead for the American market, and will be moving production to its main brewery in Dublin.
Oland said that he is “disappointed this step has become necessary,” and that Moosehead is working with the provincial government to provide various support programs for those affected by the layoffs.
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Canada, ON: Shillow Beer Co. launches with Sass on the Side Brown Ale
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Shillow Beer Co., Ontario’s newest craft beer company, launched at the end of September, with its inaugural beer to be available exclusively at one of Canada’s best beer-orientated restaurants, Canadian Beer News reported on October, 2.
Shillow Beer Co. comes from the team of brewmaster Jamie Shillow and her husband & company president Ben Shillow.
The pair are brewing their initial Shillow Beer products at the Niagara College Teaching Brewery under contract, and will be debuting their first beer at beerbistro, where it will be an exclusive house beer.
Sass on the Side Brown Ale was developed with input from beerbistro staff and managers. It will be available to order in 300 and 500 ml servings.
Following from Shillow in early 2015 there will be the more widely distributed flagship Bitter Waitress Black IPA, with future brands planned to include “a couple of Belgian styles, a fruit beer, a porter, and a lager.”
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USA, AR: Rebel Kettle Brewing Company to open brewery and taproom in Little Rock
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Rebel Kettle Brewing Company is now a reality and has a place to call home, arktimes.com reported on October, 8.
Rebel Kettle has made a reputation with tasty, creative beers that often defy categorization. Brewer John Lee and partner Tommy McGhee have now paired up with Matt Morgan and Shawn Stane, who will primarily be overseeing the business and sales aspect, to acquire a location that will be the future home of Rebel Kettle Brewing Company.
The new space is in Little Rock, an area quickly becoming a beer district for the city. It's located an easy walking distance from Stone's Throw Brewing Company and the homes of Blue Canoe Brewing and Lost 40 Brewing. Little Rock will soon claim more breweries within a few square miles than the entire state had less than a decade ago.
Tentatively scheduled to open spring 2015, the 5,500 square-foot facility will be completely renovated to house a seven-barrel brewhouse, with four seven-barrel fermenters and two seven-barrel brite tanks, plus a 1,500 square-foot tasting room equipped with 16 taps and a bottle selection.
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World: SABMiller is expected to report improved pre-tax profits next week
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On Tuesday 14 October, SABMiller is expected to release its second-quarter results. The markets are expecting the adjusted earnings per share to have increased
...More info on site
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EU: Barley harvest finished with quantity estimates ranging from 57.9 to 59.7 mln tonnes
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The barley harvest in the EU is finished. Estimates of the harvested quantity range from 57.9 (EU Commission) to 59.7 (IGC) mln tons. Almost
...More info on site
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Brazil: Brasil Kirin to invest less in 2015
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Brasil Kirin will decrease investments in its operations in the coming year, Alexandre Sanchez, the company’s Operations Vice-President, was quoted as saying on October
...More info on site
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France & China & Saud Arabia: French barley shipments increase in China and drop in Saudi Arabia
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According to FranceAgriMer, shipments of French barley to China totalled 547,000 tonnes in July – October 3 whereas the total shipped in 2013/14 was
...More info on site
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UK: Barley and wheat usage for brewing, malting, and distilling increases in the first two months of 2014/15 marketing year
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United Kingdom’s brewers, maltsters, and distillers used a total of 318.4 thousand tonnes in July-August 2014, up 3.3% on the same period last year,
...More info on site
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Jamaica: Red Stripe investing US$10 mln to set up cassava supply chain
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Jamaica’s Red Stripe has said that it will invest US$10 million over the next five years to set up a cassava supply chain, as it moves to use the tuber to offset barley imports utilised in beer production, Jamaica Observer reported on October 9.
“It is not just about growing cassava, it’s about setting up a cassava supply chain. We have a big ambition for cassava and it is going to take a massive investment,” said Red Stripe Managing Director Cedric Blair.
Blair was addressing government officials, which included Prime Minister Portia Simpson Miller and Minister of Industry, Investment and Commerce, Anthony Hylton, following a tour of the Spanish Town Road facility on October 8.
To date, the company has spent US$1.1 million on the first phase of its Project Grow initiative and is committing to invest even more over the next five years.
“Our preliminary numbers from our farmers is that under this pilot, we will produce about 70 tonnes per hectare. This means that we will produce more cassava on our pilot farm than the rest of Jamaica combined,” Blair said.
He said the company’s plan is to get to 2,500 acres within the next three to five years and to employ one
...More info on site
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Angola: New 1 mln hl brewery launched in Luanda
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A new brewery with production capacity of 1 mln hl per year was launched on October 9 in Luanda, ionline.pt reported.
The construction of Chinese-owned Lowenda Brewery Company began in 2011. The company will market its production under Bela brand and will be employing 250 Angolans and 170 foreign workers, it is reported.
The volume of investments in the project was not disclosed.
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UK: Dual purpose malting barley varieties offer security in marketing options
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As the breeders of the only two varieties on the recommended list with full IBD approval for brewing and malt distilling, Concerto and Odyssey, Limagrain UK believes that the focus on producing spring barley varieties that meet this dual requirement has benefitted growers by offering a security in marketing options, Farming UK reported on October 10.
This trend is set to continue with the introduction of four non-GN candidates Deveron, Sienna, Octavia and Olympus currently in recommended list trials.
Varieties suitable for malt distilling should be below 1.65% nitrogen, and non-GN, says Mark Glew, senior barley breeder at Limagrain.
Non-GN varieties include the version of a gene that makes them non-producers of the compound glycosidic nitrile. "It's a tiny piece of DNA, but it makes those particular varieties suitable. There are only a few of them, but they're the ones that are tested and supported by the distillers."
“Our malting barley breeding programme is geared to reflect the needs of both the brewing and distilling markets as whilst the distilling and craft beer markets are showing good growth, brewing is generally static or in decline across Europe. However, it is important that the varieties we bring to the market can be used in distilling
...More info on site
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The Czech Republic: Equipment producer can’t handle all orders from booming microbrewing sector
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Czechs are fiercely proud of their beer, and especially of the fast-growing range of varieties available from the explosion of independent craft and micro-breweries established in recent years in both Prague and the country’s many spa and historic towns, as an FT special report shows.
Indeed, the boom in innovative, independent brewing is being felt well outside the tourist-packed streets of old town Prague and Cesky Krumlov.
Sixty miles to the south-east of the Czech capital is Pacov, a small town in rolling hills that fails to make the tourist radar screen. But a factory on its southern fringes knows all about the current rage among restaurateurs for making hoppy Czech ales on site.
“We can’t handle all the orders,” says Martin Hajek, vice-chairman of Pacovske Strojirny (Pacov Engineering), with sells micro-brewery equipment. “Where we used to do two to three micro-breweries a year, we now do six to seven and we anticipate doubling this.”
Pacovske Strojirny’s slick brochures list some 50 domestic clients, ranging from safe and dependable names such as Staropramen and Krusovice, to the more reverential Hop and Beer Temple of Zatec and the exotic First Beer Spa of Roznov pod Radhostem.
Since its acquisition 18 months ago by the Safichem Group,
...More info on site
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Kenya: Keroche Breweries hires new top managers within expansion plan
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Kenya’s Keroche Breweries Ltd has hired three top managers as it readies to take on rivals, with an eye on setting up East Africa-wide operations, All Africa reported on October 9.
It has brought in Paul Wanyaga as managing director, James Ngomeli as sales and marketing director and Kennedy Muhonji as commercial director.
It is expected to remain on a hiring spree over the next few months as it looks to expand production capacity ten-fold from the current 60,000 bottles daily to 600,000.
"It is no longer a small operation and therefore needs the right skills," Ngomeli said.
He said the brewer has invested Sh3.5 billion in the expansion drive.
Keroche is betting on industry experience by the three executives to move its operations to the next level. It currently controls a five per cent market share and is targeting to claw up to a fifth of the market within three years.
"We will enhance distribution channels to cover and supply the whole country. There is demand for Keroche brands and we aim to be a formidable force even outside of Kenya by sealing the gaps," Ngomeli said.
Wanyaga, a former media manager, has past experience with East Africa Breweries Ltd, while Ngomeli is a renowned brand
...More info on site
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